Logistics services in Palau.

Palau logistics overview: modes, trade and gateways

Palau is an island country where international freight moves in by sea and air. Malakal Harbor is the main seaport, handling containerized and general cargo, including ships, refined petroleum, cars and plastic products. One oil terminal supports fuel imports. Roman Tmetuchl International Airport (ROR) near Koror provides scheduled air connections for time-sensitive shipments. The country has about 1,519 km of coastline, and most international logistics activity is concentrated around Koror.

Export values are about 3 million USD and imports about 162 million USD, serving a population of about 17,663 with a GDP of about 345 million USD. Container traffic is about 16,400 TEU, with a liner shipping connectivity index of 2.46, so shippers typically plan for feeder services and transshipment through regional hubs. One global carrier, PIL, has an office presence in Koror, supporting bookings and coordination for sea freight.

When using freight forwarders in Palau, shippers work mainly through Malakal Harbor and Roman Tmetuchl International Airport. Container throughput is about 16,400 TEU and liner connectivity is low at 2.46, so forwarders need solid transshipment arrangements with regional hubs and carriers like PIL that have offices in Koror. Palau’s main export goods are ships and refined petroleum, while imports include ships, refined petroleum, additive manufacturing machines, cars and plastic products.

Export trade is concentrated on India, Turkey, Taiwan, the USA and Japan. Import trade focuses on Italy, China, the USA, Turkey and Japan. An average applied tariff of about 9.49 percent affects landed costs. The world median customs performance score is 2.6 on the logistics performance index; forwarders should be able to explain expected clearance times and documentation flows, especially for higher-value manufactured goods moving with regional partners such as Japan, Indonesia, the Philippines and Australia.

Sea freight in containers uses Malakal Harbor, identified as Palau’s key port. The country handles about 16,400 TEU, placing it around 159th of 168 worldwide and 31st of 33 in East Asia & Pacific. Liner shipping connectivity is 2.46, which is low, so most FCL and LCL shipping from and to Palau relies on feeder services and transshipment through better-connected regional ports.

One shipping line, PIL, maintains an office in Koror, giving shippers a local contact for bookings and documentation. The merchant marine registered under Palau’s flag counts about 427 ships, including 8 container ships, 49 bulk carriers, 200 general cargo vessels, 52 oil tankers and 118 other ship types. There are no observed all-in FCL or LCL rate examples in the data used here.

Air cargo moves through one airport with scheduled service: Roman Tmetuchl International Airport (ROR) near Koror. Palau has a total of 3 airports, but ROR is the primary international gateway for freight. Air freight is typically used for higher-value or time-sensitive imports such as additive manufacturing machines, selected automotive parts, and smaller consignments of plastic products.

Given annual imports of about 162 million USD and exports of about 3 million USD, air freight complements ocean shipments rather than replacing them. Export air cargo may include urgent shipments connected to trade with India, Turkey, Taiwan, the USA and Japan, especially when transit time outweighs transport cost.

Palau is not landlocked, and international trade moves directly by sea and air. There are no international land borders or overland gateway routes to other countries that affect routing choices.

Domestic road transport links production, storage and distribution sites with Malakal Harbor and Roman Tmetuchl International Airport. Road moves usually form the first and last mile for both containerized cargo and air freight, supporting the flow of imports such as cars, refined petroleum and plastic products.

Palau is a high income island economy in the East Asia & Pacific region and a member of the World Customs Organization since 2024. The country is not a member of the WTO. Average applied tariffs are about 9% on imports, which shapes total import costs for shippers. Imports are much larger than exports by value, at about 162 million USD versus about 3 million USD in 2025.

For freight forwarders in Palau, the global Logistics Performance Index customs score of 2.7 offers a benchmark, matching the world median of 2.7. The commercial invoice, packing list and transport document form the core paperwork for customs clearance. Trade is concentrated with partners such as Italy, China, the USA and Turkey on the import side, and India, Turkey and Taiwan on the export side.